According to a release, women’s apparel retailer Christopher and Banks announced that they filed for Chapter 11 reorganization. Hence, they are planning to shut down 400 stores across the United States of America.
Stores in the Middle Tennessee area closed. According to the local store at CoolSprings Galleria in February, had a tentative date as to when the closure will happen but, was definite that all Christopher and Banks outlets will complete their closures by the end of February. And, currently, they are defunct.
Then-CEO and President, Christopher and Banks, Keri Jones said in a release that since the beginning of the pandemic, they took aggressive steps to safeguard their business while serving customers in a safe and healthy atmosphere.
However, despite these aggressive measures they have made, due to the financial incapability from the pandemic and its continuing effects, they have planned to start the process and pursue a potential sale in part or in whole to place the company for the future. She also expressed her gratitude.
At the time, they operated roughly 400 stores in 44 states, but they said it would close a “significant portion” and, at the same time, was on an active discussion to sell their website.
The bankruptcy was portended in the previous year in 2020 when the firm announced an investment banker was hired to reorganize its debt and find other strategic alternatives. According to the CNN Business database, in May, the company took a loan somewhere ranging between $5 million to $10 million from a program called Paycheck Protection.
Christopher and Banks had admitted in one of their latest earnings release that the pandemic has interrupted and halted women’s shopping habits, who shop at outlets that provide more formal attire. The firm stated that women became more practical shoppers, choosing more leisure wears instead of apparel for social engagements.
Christopher and Banks are not alone in this tragic situation. There are a handful of retailers who have announced similar reasons in their bankruptcy filings in 2020. However, at this time, Christopher and Banks are continuing their business on an online platform.
Purchasing formal and work attire has dropped out of fashion with the shift from offline to online and the work-from-home practices. That has created a hassle for the future of companies that depend on formal dressing. Data from various sources reveal that more than 8,700 stores shut down last year, and more than 1,400 closed just this year.
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